|
Q: Who must provide unemployment?
All employers must pay a form of state unemployment tax. In the majority of States, benefit
funding is based solely on a tax imposed on employers.
Q: What employers are eligible to reimburse the unemployment charges?
Section 3309 of the Federal Unemployment Tax Act provides an important savings opportunity to
qualified employers. Nonprofit 501(c)3, Public Entity and Indian Tribe employers have the
option to pay state taxes to the unemployment insurance fund or to reimburse their unemployment
benefit charges on a dollar-for-dollar basis.
Q: What types of organizations are eligible for UC Assure?
The types of organizations who qualify for our unemployment compensation services must be
designated as a 501(c)3 Nonprofit Organization, Public Entity or an Indian Tribe.
Q: How is a UC Assure rate determined?
UC Assure provides a fixed annual rate that is based on an organization's own unemployment
profile. This individualized rate allows for budgeting and cost allocation certainty.
Q: With UC Assure, are quarterly wage statements still filed with the state?
Yes, regardless of funding method, each organization will continue to report quarterly wage
information to the state.
Q: Will changing to UC Assure impact former employees seeking unemployment?
No, there will be no change.
Q: When can an organization leave the state unemployment tax system?
Each state has its own timeline. For assistance, contact us.
Q: How does UC Assure work for currently reimbursing employers?
If an organization loses funding or runs into unanticipated layoffs, the potential cost of
claims could be devastating. UC Assure gives employers who are currently reimbursing several
options providing protection, while still allowing them to maintain the cost advantages of
reimbursing. UC Complete is an option that affords total coverage and service; whereas,
UC Flex allows an organization to choose their desired level of risk.
Q: Does UC Assure provide coverage for trusts?
Absolutely. UC Assure provides excess coverage for both trusts as a whole, and/or individual
members within a trust.
Q: Why would UC Assure be beneficial for members of a trust?
Simply because an organization is in an unemployment trust, does not mean it is protected.
Each organization in a trust remains responsible for its unemployment charges and may be
asked to pay the charges in excess of its reserve. UC Assure can provide excess coverage
to the trust as a whole and/or to individual members of the trust. Just as an organization
purchases excess coverage for other property and casualty claims, so should they protect
their unemployment compensation risk.
Q: Is it necessary to fund and maintain a reserve account with UC Assure?
There is no reserve account to fund or maintain, nor is an account pooled with other employers’ accounts. UC Assure products are rated from the unemployment experience of each organization or group.
Q: Is UC Assure a more secure financing method than joining a trust?
Due to the nature of trusts, if one or more members overextend their unemployment trust
account (reserve), the trust may draw from other members’ accounts to cover those obligations.
This can easily lead to instability and potential financial pitfalls for the trust and its
members' accounts.
Ohio Indemnity Company (a financially sound insurance company), indemnifies your risk.
UC Assure does not combine or draw from other customer's funds, thereby giving the assurance
an organization needs to adequately and securely finance its unemployment obligations.
Q: How is the UC Assure program managed?
An experienced and dedicated Account Manager is assigned specifically to each organization,
ensuring superior service is received. From the beginning, the Account Manager provides
complete assistance and guidance during the transition to UC Assure. In addition, our
customers are informed of all unemployment activity through quarterly electronic reports;
plus, newsletters and bulletins keep customers abreast of the most recent legislative changes
and trends.
Q: Who handles the unemployment claims with UC Complete?
Claims are administered through the value-added services of TALX, the nation's leader in
unemployment claims management. A dedicated staff of professionals assumes full responsibility
from the filing of the initial claim to its final disposition and is always available to meet
the needs of our customers.
Q: What does "expert claims administration" mean to an organization?
- Full responsibility for claims administration, from the initial filing of a claim to its final disposition
- Representation at unemployment hearings
- Expert advice to assist an organization in winning unemployment claims
- Auditing of benefit charges, which prevent overpayment errors
- Online training and services – ability to review management reports, as well as access to other useful tools
- Educational seminars
- Continual updates regarding state specific unemployment information
- The reassurance of a trusted leader in unemployment claims management
|